LogFAQs > #885426383

You have a good grasp of the situation

They're part of a group of real estate "tech" companies (I only call Redfin "tech" because that's what they ran their IPO on...I don't buy it. They're a brokerage) racing to the bottom by trying to either cut the agent out, or downplay their value. And I find a dishonesty involved when a discount brokerage company claims to have only 1% commissions but still (as you say) have to pay the buy side the usual 3% (though even with that I'm seeing more and more 2.5% buy sides lately...I'm in the San Diego market fwiw).

The problem with real estate is its a 97/3 business (there's no 80/20 here) and tech companies are trying to fill the gap by automated the home buying / selling process. Check out a company called GoldenKey...they pretty much offer a la cart real estate services.

Wait until the lawsuits (real estate is an insanely litigious industry)...they'll be hating life. That coupled with this race to the bottom to devalue the agent means they are going to be fighting the industry as they try to grow.